FTSE 100 spreads opened firmly in the red this morning, but the index fought its way higher during the early part of the session.
The index even managed to poke its head into positive territory before a keenly-watched Italian bond auction sent it tumbling back down.
Yields on one-year Italian bonds touched a 14-year high this morning, as investors’ demand for Rome’s debt crumbled like a decaying temple.
Yesterday’s market volatility has eased somewhat after the ECB began intervening in the Italian bond market, and benchmark yields have dropped back below the vital 7% level this morning.
‘Super Mario’, the new head of the ECB, has managed to buy a little breathing space for his compatriots, but it’s difficult to say how long this will last.
We saw some impressive falls on Wall Street yesterday afternoon, but US investors seem to have recovered some of their composure, and the Dow is expected to open around 97 points higher.
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Financial Market Comments from Chris Beauchamp, Market Analyst, IG Index.
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